The current approach to economic stimulus (providing large amounts of money to certain institutions in the hope that it will eventually lead to increased lending and so the expansion of businesses and the creation of jobs) is not effective. It gives an advantage to a specific sector of our economy by allowing the financial sector to shape the economy of the UK more broadly. The economy will only recover when people have secure jobs and enough money to live, spend in the economy, and invest in their pensions and savings. Making large numbers of people redundant in the hope that the private sector will simply create jobs is not the right course of action. We will advocate a more direct approach to economic recovery and creating jobs.
The UK faces a number of challenges, from a lack of social housing to poor transport and communications links, that could be dealt with by initiating infrastructure projects. The product of such infrastructure projects would provide a long term benefit to the UK and stimulate future growth. We could increase the rate of high speed broadband expansion, improve public transport (particularly outside London) and make Britain a world leader in renewable energy. This will allow us to reduce unemployment and provide skills to people who have lost jobs in other parts of the economy.